BTCS Inc. filed SEC Form 8-K: Creation of a Direct Financial Obligation, Other Events, Financial Statements and Exhibits
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Item 2.03. Creation of a Direct Financial Obligation or an Obligation under an Off-Balance Sheet Arrangement of a Registrant.
On July 14, 2025, BTCS Inc. (the “Company”) borrowed an additional $2.34 million USDT from AAVE, a decentralized finance lending protocol, bringing the total borrowings on AAVE to approximately $17.8 million USDT. The total AAVE borrowing: (i) is collateralized by approximately 16,232 Ethereum (ETH) with an approximate value of $49.1 million based on an ETH price of $3,025, and (ii) has no fixed maturity date but is subject to liquidations or partial liquidations if the health factor (“HF”) falls below one. The HF is calculated by taking the total value of the ETH collateral, multiplying it by its liquidation threshold (approximately 80% for ETH), and then dividing that result by the total value of the borrowed USDT.
The loan carries a variable interest rate set by AAVE’s smart contract, which adjusts based on market conditions and is published at aave.com. At the time of the additional borrowing, the interest rate was approximately 5.4% per annum. The $49.1 million in ETH collateral also earns interest at a variable rate, which was approximately 2% at the same time. As a result, the effective net cost of capital, interest paid minus interest earned, is approximately 3.4%.
The proceeds from the loan were used to acquire additional ETH, which the Company has staked or intends to stake through its NodeOps business. The Company’s Board of Directors has authorized management to borrow up to 40% of the Company’s total assets (inclusive of convertible notes) as measured at the time of borrowing.
Item 8.01. Other Events.
As of July 14, 2025, the Company’s Ethereum (ETH) ownership and value were approximately:
| On July 14, 2025 | ||||||||||||||||||
ETH Acquired (1) | Aggregate Purchase Price (2) | Average Purchase Price (2) | Aggregate ETH Holdings | Aggregate Fair Market Value (2) | ||||||||||||||
| 2,731.44 | $ | 8.24 million | $ | 3,016.73 | 31,855 | $ | 96.2 million | |||||||||||
(1) The ETH purchases were made using cash on hand and borrowings from the AAVE DeFi protocol.
(2) Fair market value based on ETH-USD price of $3,025 as of July 14, 2025.
Additionally, the fair market value of the Company’s total cryptocurrency holdings and cash was approximately $100.6 million as of July 14, 2025.
Item 9.01 Financial Statements and Exhibits
(d) Exhibits.
| Exhibit No. | Exhibit | |
| 104 | Cover Page Interactive Data File (embedded within the Inline XBRL document) |
SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
| BTCS INC. | ||
| Date: July 15, 2025 | By: | /s/ Charles W. Allen |
| Name: | Charles W. Allen | |
| Title: | Chief Executive Officer | |